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ELRCOtherNot stated beyond Memorandum of Claim dated 14th May, 2024, filed 16th May, 2024· [2025] KEELRC 1316 (KLR)

Kamande & 2 others v Aee Power Limited; Kenya Power and Lighting Company Limited & another (Interested Parties) (Cause E366 of 2024) [2025] KEELRC 1316 (KLR)

Employment and Labour Relations Court
9 May 2025
995 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court struck out Kenya Power from a workers' claim, ruling you can only sue the company you actually worked for.

What this practically means

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Executive summary

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By a Memorandum of Claim dated 14th May, 2024, three Claimants sued EAA Power Limited, seeking declarations that their September 2023 redundancy was unlawful, payment of terminal benefits totalling Kshs.7,400,327.50, certificates of service and costs, together with an order that the 1st Interested Party, Kenya Power and Lighting Company Limited, deduct and remit the claim from proceeds due to the Respondent under the Last Mile Connectivity Project Lots 2 and 4. The Claimants pleaded they were employees of the Respondent, which executed contracts with the 1st and 2nd Interested Parties and paid their salaries. Kenya Power filed a Notice of Motion dated 27th June, 2024 under Sections 1A, 1B, 3 and 3A of the Civil Procedure Act and Order 1 Rules 9 and 10 of the Civil Procedure Rules, seeking to have its name struck out from the suit on the ground that it was not privy to the employment contracts. The application was unopposed. Relying on the doctrine of privity of contract as stated in Savings and Loan (K) Limited v Kanyenje Karangaita Gakombe, Dunlop Pneumatic Tyre Co. Ltd v Selfridge and Agricultural Finance Corporation v Lengetia, the court held that employment claims require privity between claimant and the person sued, and that no cause of action lay against Kenya Power, which was wrongly enjoined. The application was allowed, Kenya Power's name was struck out from the claim, the suit against it was struck out, with no order as to costs. The claim against the Respondent remains undetermined.

Key legal issues

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01

Whether the 1st Interested Party was properly joined in the employment claim

Holding

The 1st Interested Party was wrongly enjoined as it was not party to the employment contracts with the Claimants; its name was struck out and the claim against it struck out

Reasoning

The court held that employment relationships are contractual and a valid employment claim requires privity of contract between the claimant and the party sued. The Claimants pleaded that their employer was EAA Power Limited, the Respondent, which paid their salaries. Kenya Power merely contracted with the Respondent and was not privy to the employment contracts, so no cause of action lay against it.

p. 3

Legal principles established

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  • A claim based on alleged employment requires demonstration of privity of contract between the claimant and the person sued
  • The doctrine of privity of contract postulates that a contract cannot confer rights or impose obligations on persons who are not parties to it

Court orders

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  1. 1.The 1st Interested Party's Notice of Motion dated 27th June, 2024 is allowed
  2. 2.The 1st Interested Party's name, Kenya Power and Lighting Company Limited, is struck out and removed from the suit/claim
  3. 3.The Claimants' suit against the 1st Interested Party is struck out, with no order as to costs

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3 and 3A
  • Civil Procedure Rules 2010Order 1 Rules 9 and 10

Cases cited (3)

  • Savings and Loan (K) Limited – vs – Kanyenje Karangaita Gakombe & Another
    [2015] eKLR
  • Dunlop Pneumatic Tyre Co. Ltd – vs – Selfridge & Company Limited
    [1915] AC 847
  • Agricultural Finance Corporation – vs – Lengetia Limited
    [1985] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (application brought under Sections 1A, 1B, 3 and 3A of the Civil Procedure Act and Order 1 Rules 9 and 10 of the Civil Procedure Rules 2010)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Kamande & 2 others v Aee Power Limited; Kenya Power and Lighting Company Limited & another (Interested Parties) (Cause E366 of 2024) [2025] KEELRC 1316 (KLR)", Case Analysis (2025). Not stated beyond Memorandum of Claim dated 14th May, 2024, filed 16th May, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1316/eng@2025-05-09

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.